UAE-based Medical FinTech KLAIM raises $1.6M Pre-Series A

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The UAE-based FinTech and medical factoring solution provider KLAIM has successfully raised a remarkable $1.6M in its latest funding round. The Pre-Series A round was led by Mad’a Investments from Saudi Arabia, and recorded participation from Arzan Venture Capital and Wealth Well, as well as a follow-up investment from Techstars, which opened its seed funding round in December 2020.

Founded in 2019, KLAIM set forth to build a faster, cheaper, and more efficient insurance claim ecosystem for healthcare providers. The UAE-based medical factoring solution provider purchases healthcare claims from healthcare providers to relieve them of cash flow issues caused by insurance companies, pay them at a much faster and favorable pace, and alleviates financial bottlenecks caused by reimbursement delays. 

As recorded in our latest August 2021 Venture Investment Dashboard, the Healthcare sector kept the steady signs of development it showed in the first half of the year across Emerging Venture Markets. Healthcare startups in MENA closed the 4th highest amount of deals in the month of August, and the 5th highest amount in Turkey and Pakistan.  In MENA, driven by deal momentum in geographies like UAE and Egypt, collectively accounting for 66% of all transactions closed in H1’21, the Healthcare industry closed half the amount of deals in  FY 2020.


 


Through NPHIES, the National Platform for Health Information Exchange Services, The Government of Saudi Arabia is committed to developing a new, efficient and modern model to manage the country's medical insurance financial flows. KLAIM adds value to the ecosystem by enabling hospitals and clinics to reduce processing costs and optimize cash flow management. Karim Dakki, KLAIM Co-Founder and CEO stated "It is time for innovative technology solutions that are challenging the status quo to better serve healthcare financial leaders and help them ensure the GCC nationals’ and residents’ healthcare dirham goes as far as possible in providing patient care.”

According to KLAIM's growing dataset of 8M+ claims, in the UAE for instance, it takes on average 113 days for insurance companies to reimburse 90 percent of outstanding claims to providers. The remaining 10 percent of claims stretch well over a year or remain unpaid in many situations. This is a severe problem impacting the industry as Dakki elaborated “Rejections and claim payment delays result in losses amounting to millions of dollars annually across the industry. Healthcare providers face business instability in their day-to-day operations: paying salaries, upgrading equipment, and expanding pose greater challenges than they should. We support the industry to provide better care through our innovative blended approach to finance and healthcare.”

The UAE-based FinTech plans to use the fresh influx of capital to accelerate its growth in Saudi Arabia by digitizing and automating medical billing processing and payments for healthcare providers in addition to providing them with desperately needed liquidity. "The factoring industry is big globally, but limited to large companies in the Middle East. We introduced a steep innovation making it tech-enabled and very specific to the needs of Healthcare providers. We are very excited to be the go-to solution and help medical practitioners focus on their patients' health. At the same time, we handle medical claims processing for them." Ghafoor Ahmad, KLAIM Co-Founder and Chief Revenue Officer concludes.


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